The Ontario government is stopping the estimated 4.6 per cent increase to the beer basic tax and LCBO mark-up rates that was scheduled for March 1, 2024.
This increase would have resulted from rates being indexed to inflation, which the government has consistently stopped over the last six years, resulting in approximately $200 million in relief.
This latest freeze will be in place for two years, until March 1, 2026.
“Our government is constantly looking for ways to make life more affordable for Ontario families by putting more money back into their pockets,” said Premier Doug Ford. “From stopping increases to the beer tax to cutting the gas tax, we are keeping costs down for businesses and families across the province.”
This action was aimed at supporting the beer sector’s transition towards a new alcohol retail marketplace.
It was previously announced that starting no later than January 1, 2026, consumers in Ontario will have access to beer, wine, cider, and ready-to-drink alcoholic beverages in participating convenience, grocery, and big box grocery across the province.
“Our government is building on its commitment to offer choice and convenience to consumers while providing certainty and stability for the alcohol and hospitality sectors,” said Minister of Finance, Peter Bethlenfalvy. “As we prepare to transition to a new alcohol retail marketplace, this pause on beer basic tax and LCBO mark-up rates will help make it easier for businesses by providing savings for consumers and helping brewers to reinvest in themselves and their workers.”
In the coming months, the province plans on meeting and consulting with industry partners, beverage alcohol producers, and other stakeholders to ensure a smooth, safe, and stable transition to a new marketplace.
The province will also conduct a targeted review of taxes and fees on beer, wine, and alcoholic beverages to promote a more competitive marketplace for Ontario-based producers and consumers.
